(1) Upon application by any owner of a tract of land within the district, the board of directors of any irrigation district may determine the proportionate part of the liability of the tract for assessment in payment of the outstanding bonded indebtedness. In determining the amount of liability, the board shall take the total amount of bonds outstanding and divide this sum by the total irrigable acres and multiply the quotient by the total irrigable acres in the tract. In any district in which the cost has been divided into units, the board shall determine the proportionate amount of liability in the same manner, using the total amount of bonded indebtedness apportioned to the unit and the irrigable area in the unit. After determining the total apportioned part of the liability of any tract for the payment of bonded indebtedness, the board of directors may accept the bonds of the district in payment of the total amount of the liability of the tract of land within the district. However, in addition to the bonds, a cash payment of not less than five percent of the total amount of liability on the tract shall be tendered and paid to the district at the time of delivery of the bonds.
(2) Except in case of default of the district, the board of directors may enter into an agreement with the owner of the tract of land who makes the payment, relieving the tract of all existing assessments and liens, except warranted indebtedness, state interest, and operation and maintenance. The transaction shall be recorded in the minutes of the board of directors of the district.
(3) Any additional cash payment collected by the board under subsection (1) of this section shall be deposited with the treasurer of the district and placed in a separate fund, which shall be used only for the retirement of bonds. [Formerly 545.216]
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